Sale of a Company car

[Im a BusyBee]

Im having a blonde moment! is a company car sale exempt of VAT or zero rated please?? thanks so much

[moomintroll1]

If you were entitled to claim back VAT on the purchase of the vehicle, you must declare VAT on the sale.

If there was a block on claiming back VAT when you purchased the vehicle, the sale is VAT-exempt.

[Skyline D]

The question isn't terribly clear. IF there is no VAT to pay (which appears to be presumed in the question) then it's exempt, not zero rated.

If it's a company now selling a car they've previously been using as a company car for one of their staff then it does, as someone said above, depend on how the car was treated whilst with them whether there should be VAT involved. If it was only used for business mileage (didn't go to anyone's home at night) then it's a qualifying car, VAT should have been claimed on it when it was bought and should be charged on it when sold. If it had private mileage at all then it should have had no vat claimed on it to date and none charged now unless it's actually being sold for more than it cost, in which case you have to pay VAT on the margin.

If it's a garage selling a car to a company then it would be normal VAT charged.

[Oneeyedvic]

I am afraid that this is a 'depends' question.

Are you talking about a company buying a new car (and by buying do you mean cash, hp or lease) or are you talking about a company selling a company car once they have finished with it?